Alleged Ponzi schemer Allen Stanford cut his wrist and made a secret blood pact with the banking regulator of the island of Antigua, where his bank operated, according to court documents. Stanford and the official pressed their bloody wrists together in a "brotherhood ceremony," after which the regulator called him "Big Brother," reports the New York Times. Stanford later gave the regulator Super Bowl tickets and deposited bribes into his Swiss bank account, according to a witness.
The bizarre details of Stanford's dealings with regulator Leroy King, who has been arrested and is facing extradition to the US, were disclosed by Stanford's CFO, who has pleaded guilty to fraud and conspiracy. His plea agreement also states that Stanford got King to fire several regulatory officials who were "becoming aggressive and suspicious." King also allegedly tipped Stanford off multiple times about letters from the SEC concerning Ponzi scheme suspicions—yet in February he told an interviewer, "I am absolutely sure that my banking system is clean." (More Robert Allen Stanford stories.)
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